This week we have been detailing the pension changes due to come in from April 2015.
Change 5: Transferring a defined benefit pension (e.g. final salary)
What is changing:
Most people with a defined benefit (e.g. final salary) pension will be able to take advantage of the new rules and make unlimited withdrawals. To do so, they will have to transfer to a defined contribution pension (e.g. a SIPP). But as you could lose very valuable benefits, you will have to receive appropriate independent advice first.
Who will be affected:
Anybody with a defined benefit pension, wishing to take advantage of the increased flexibility after April 2015. It will no longer be possible to transfer from most public sector pension schemes.